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Fino Payments Bank IPO: Dates, Details and Overview 3 min read

October 29, 2021 3 min read
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Fino Payments Bank IPO: Dates, Details and Overview 3 min read

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The Rs. 1,200-crore initial public offer (IPO) of Fino Payments Bank backed by Fino Paytech opened today and is closing on 2nd November. The company has fixed a price band of Rs. 560-Rs. 577 per share. The face value of each share is Rs. 10 and one needs to buy a lot of minimum 25 shares.

The IPO by payment lender is a mix of fresh issue of shares and an offer for sale (OFS). The initial public offer (IPO) includes a fresh issue of equity shares worth Rs. 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.

Know the company

Fino Payments Bank is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus. It offers such products and services to its target market via a pan-India distribution network and proprietary technologies, and since 2017, it has grown its operational presence to cover over 90% of districts as of September 30, 2021. It first became profitable in the fourth quarter of financial year 2020 and has been profitable in subsequent quarterly periods.

The company operates an asset light business model that principally relies on fee and commission based income generated from its merchant network and strategic commercial relationships. 

Its products and services include various current accounts and savings accounts (“CASA”), issuance of debit card and related transactions, facilitating domestic remittances, open banking functionality (via our Application Programming Interface (“API”)), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System “AePS”) and cash management services (“CMS”).

IPO Details

IPO Opening Date: Oct 29, 2021

IPO Closing Date: Nov 2, 2021

Face Value: ₹10 per equity share

IPO Price: ₹560 to ₹577 per equity share

Market Lot: 25 Shares

Min Order Quantity: 25 Shares

Listing: At BSE, NSE

Issue Size: up to ₹1,200.29 Cr

Objective of the offer

With the raised amount, the company plans to augment its Bank’s Tier – 1 capital base to meet its future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer.

In addition, The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.

Strengths of the Company

  1. Their Distribution-Technology-Partnership (DTP) framework is top notch. 
  2. They lay focus on a technology focused business model with an advanced digital platform. 
  3. Customer centricity and innovation at the core of business
  4. An asset light and scalable business model
  5. Operational experience and expertise
  6. Highly experienced and committed leadership team

Risks involved

  1. The uncertainty due to continuing effects of the COVID-19 pandemic and associated responses on its business continues.
  2. There is still an inability to undertake commission-based activities owing to general macroeconomic conditions & regulatory instructions. 
  3. Within the company, there continues to be a disruption of failure of its IT systems, inability to innovate, upgrade & respond to new technological advances. 
  4. There’s an inability to comply with stringent regulatory requirements, prudential norms and regulations. 
  5. Adverse changes in states of Uttar Pradesh Bihar and Madhya Pradesh where there is a significant portion of the merchant distribution network is located.
  6. The company is dependent on merchants & strategic commercial relationships for its service and product distribution network.

Important Financial Data

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Peer Comparison

There are no listed companies in India whose business portfolio is comparable with that of the company’s business and comparable to its scale of operations.

IPO Timeline

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Sources: RHP, BLRM 

Disclaimer – This content is purely for informational purposes and is in no way advice or recommendation.

Investment in the securities market is subject to market risks, read all the related documents carefully before investing. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. visit www.paytmmoney.com for complete disclaimers